Welcome to the ProfitsPerMinute Glossary of Terms – your quick reference guide to forex, crypto, and AI trading concepts. Whether you’re a beginner or an advanced trader, this glossary makes complex terms simple so you can stay confident and informed on your journey.

Arbitrage – Buying and selling the same asset in different markets to profit from price differences.
Ask Price – The price at which you can buy a currency pair or asset.
Balance – The money in your trading account before open positions.
Base Currency – The first currency in a pair (e.g., EUR in EUR/USD).
Bear Market – A market where prices are generally falling.
Bid Price – The price at which you can sell a currency pair.
Blockchain – A decentralized ledger technology used to record crypto transactions.
Breakout – When price moves beyond a set support or resistance level.
Broker – A company or individual that connects traders to the market.
Bull Market – A market where prices are generally rising.
Candlestick – A chart type showing high, low, open, and close prices in a set period.
Carry Trade – Borrowing in a low-interest currency to invest in a higher-interest one.
Central Bank – A nation’s bank managing monetary policy, interest rates, and money supply.
Commission – Broker’s fee for executing trades.
Correlation – The relationship between two assets (e.g., EUR/USD and GBP/USD).
Crypto Exchange – A platform for buying and selling cryptocurrencies.
Cross Currency Pair – A pair that excludes USD (e.g., EUR/GBP).
Currency Pair – Two currencies traded against each other in forex.
Day Trading – Opening and closing trades within a single day.
Drawdown – The drop from a peak balance to a low point, showing potential loss.
Economic Calendar – A tool showing events and data that may affect markets.
Equity – Account balance + unrealized profits or losses.
Fibonacci Retracement – A tool for spotting support/resistance levels.
Fundamental Analysis – Studying news, data, and economics to forecast price.
Hedging – Using trades to offset risk in existing positions.
Hybrid Trading™ – A ProfitsPerMinute philosophy combining human decision-making with AI tools for smarter, balanced trading.
Leverage – Borrowed capital to increase position size.
Limit Order – An order to buy/sell at a specific price or better.
Liquidity – How easily an asset can be traded without big price changes.
Long Position – Buying an asset expecting its price to rise.
Lot – Standardized trade size in forex (e.g., 100,000 units in a standard lot).
Margin – The money required to open and maintain a leveraged trade.
Moving Average – A technical indicator smoothing price data to identify trends.
Order – An instruction to buy or sell at a set price.
Over-the-Counter (OTC) – Direct trading between parties, outside of exchanges.
Pip – The smallest unit of price change in forex (0.0001 in most pairs).
Position Size – The total volume of a trade.
Quote Currency – The second currency in a pair (e.g., USD in EUR/USD).
Resistance – A price level where an uptrend often stalls due to selling pressure.
Risk Management – Methods used to reduce potential losses.
Risk-to-Reward Ratio – The comparison of potential profit vs. potential loss.
Scalping – Making many small trades to capture minor price movements.
Short Position – Selling an asset expecting its price to fall.
Spread – The difference between the bid and ask price.
Stablecoin – A crypto asset pegged to a stable value like USD.
Stop Loss – An order to close a position automatically to limit loss.
Support – A price level where a downtrend often pauses due to buying pressure.
Swing Trading – Holding trades for days/weeks to capture medium-term moves.
Take Profit – An order to automatically close a trade at a profit.
Trend – The overall direction of price movement.
Volatility – How much and how quickly an asset’s price changes.